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A comparative analysis of the internationalization of Chinese and Japanese firms

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Abstract

This paper integrates institution-, industry-, and resource-based views of internationalization and demonstrates that industrial characteristics, firm resources, and institutional factors can significantly explain the differences and similarities of international expansion of Chinese and Japanese multinational enterprises (MNEs). In particular, this paper maps the growth of Chinese MNEs since economic reforms in 1978 and that of Japanese MNEs after World War II. We illustrate the similarities and differences between Chinese and Japanese MNEs with two case studies: foreign direct investment (FDI) of Haier and Matsushita. We suggest that how firms internationalize, in addition to being influenced by industry- and resource-based considerations, is inherently shaped by the domestic and international institutional frameworks governing these endeavors.

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Notes

  1. We use the term state controlled enterprises (SCEs) instead of state-owned enterprise (SOEs) since many of Chinese state-owned enterprises are being corporatized and part of the equity being liquidated on stock market. Lin and Sun (2005) found that the state effectively controlled all Chinese listed companies through majority shareholding (an average of 82%) and appointment of board directors.

  2. Many of these firms were part of a large group of enterprises that were established after 1978 economic reforms.

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Authors and Affiliations

  1. School of Management, Queensland University of Technology, 2 George Street, Brisbane, QLD 4001, Australia

    Xiaohua Yang

  2. College of Business and Economics, California State University, East Bay, 25800 Carlos Bee Blvd, Hayward, CA, 94542, USA

    Yi Jiang

  3. Institute of World Economy Research, Chinese Academy of Social Sciences, 5 Jiannuei Da Jie, Beijing, People’s Republic of China, 100732

    Rongping Kang & Yinbin Ke

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  1. Xiaohua Yang
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Correspondence to Xiaohua Yang.

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Yang, X., Jiang, Y., Kang, R. et al. A comparative analysis of the internationalization of Chinese and Japanese firms. Asia Pac J Manag 26, 141–162 (2009). https://doi.org/10.1007/s10490-007-9065-0

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